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Getbig Main Boards => Politics and Political Issues Board => Topic started by: Roger Bacon on August 26, 2011, 05:50:36 AM
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If we were on the Gold Standard, with so many dollars in circulation wouldn't the dollar value of gold explode? I would guess that there are several thousand more US dollars in circulation than ounces of gold?
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If we were on the gold standard banks would be required by law to keep a certain fraction of gold in reserves. This would drive down the circulation of dollars in the economy and cause huge deflationary pressures because of the limited supply of gold. The only advantage of the gold standard in modern times is that it ensures that you wont have major inflation problems, certainly not the kind of extreme runaway inflation that happened in 1930s Germany or in Eastern Europe, or as is currently happening in South America. But its not practical in a large modern economy that requires a large enough money supply. Even before modern times, the gold standard presented problems when the supply of gold became scarce. The big disadvantage of it is that it makes the money supply very inflexible because it is tied to the supply of gold in the world. It can take years for a new wave of gold to be discovered and therefore raise the money supply.
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we'd invade more countries. Coincidentally, they'd have two things. "Terrorism" and gold.
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If we were on the gold standard banks would be required by law to keep a certain fraction of gold in reserves. This would drive down the circulation of dollars in the economy and cause huge deflationary pressures because of the limited supply of gold. The only advantage of the gold standard in modern times is that it ensures that you wont have major inflation problems, certainly not the kind of extreme runaway inflation that happened in 1930s Germany or in Eastern Europe, or as is currently happening in South America. But its not practical in a large modern economy that requires a large enough money supply. Even before modern times, the gold standard presented problems when the supply of gold became scarce. The big disadvantage of it is that it makes the money supply very inflexible because it is tied to the supply of gold in the world. It can take years for a new wave of gold to be discovered and therefore raise the money supply.
Thanks, I appreciate this information!
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we'd invade more countries. Coincidentally, they'd have two things. "Terrorism" and gold.
You mean, they wouldn't just happen to have Terrorism, and Oil in common anymore?
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You mean, they wouldn't just happen to have Terrorism, and Oil in common anymore?
yeah, it's all a coincidence that every single nation we are 'involved' in happens to export 1 of these 2 things.
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Hahaha...gotta love the contrast:
An intellectual response:
If we were on the gold standard banks would be required by law to keep a certain fraction of gold in reserves. This would drive down the circulation of dollars in the economy and cause huge deflationary pressures because of the limited supply of gold. The only advantage of the gold standard in modern times is that it ensures that you wont have major inflation problems, certainly not the kind of extreme runaway inflation that happened in 1930s Germany or in Eastern Europe, or as is currently happening in South America. But its not practical in a large modern economy that requires a large enough money supply. Even before modern times, the gold standard presented problems when the supply of gold became scarce. The big disadvantage of it is that it makes the money supply very inflexible because it is tied to the supply of gold in the world. It can take years for a new wave of gold to be discovered and therefore raise the money supply.
And the retard response:
we'd invade more countries. Coincidentally, they'd have two things. "Terrorism" and gold.
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Go to zerohedge and look through their past posts to find out how a gold standard could work.
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Legalise competing currencies. Let the people choose what they use...
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Thanks, I appreciate this information!
If you read Thomas Sowell's book BASIC ECONOMICS, he has a pretty short and thourough explanation of how the gold standard works. Very informative and easy to understand.
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If we were on the gold standard banks would be required by law to keep a certain fraction of gold in reserves. This would drive down the circulation of dollars in the economy and cause huge deflationary pressures because of the limited supply of gold. The only advantage of the gold standard in modern times is that it ensures that you wont have major inflation problems, certainly not the kind of extreme runaway inflation that happened in 1930s Germany or in Eastern Europe, or as is currently happening in South America. But its not practical in a large modern economy that requires a large enough money supply. Even before modern times, the gold standard presented problems when the supply of gold became scarce. The big disadvantage of it is that it makes the money supply very inflexible because it is tied to the supply of gold in the world. It can take years for a new wave of gold to be discovered and therefore raise the money supply.
Fantastic explanation. The gold standard is simply a fair tale for the US economy. Something brought up in tough times as an alternative that wouldn't work at all.
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Fantastic explanation. The gold standard is simply a fair tale for the US economy. Something brought up in tough times as an alternative that wouldn't work at all.
lol ok....
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Go to zerohedge and look through their past posts to find out how a gold standard could work.
Thanks, I'm checking that out!
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Fantastic explanation. The gold standard is simply a fair tale for the US economy. Something brought up in tough times as an alternative that wouldn't work at all.
The real fairy tale is the US dollar and its future as the reserve currency. What do you think the real reason was for going to war against Libya? What did Gaddafi and Husain have in common? Why is JP Morgon, Goldman Sachs, and every other bank around the world gobbling up as much physical gold as they can at this very moment?
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The real fairy tale is the US dollar and its future as the reserve currency. What do you think the real reason was for going to war against Libya? What did Gaddafi and Husain have in common? Why is JP Morgon, Goldman Sachs, and every other bank around the world gobbling up as much physical gold as they can at this very moment?
dumping the US Dollars? ???
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dumping the US Dollars? ???
freedom. democracy. any other reason is conspiracy theory.
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freedom. democracy. any other reason is conspiracy theory.
If you think it had anything to do with freedom or democracy you are a lunatic. Wars are just the spear of monetary policy and control, nothing more.
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If you think it had anything to do with freedom or democracy you are a lunatic. Wars are just the spear of monetary policy and control, nothing more.
people like beach bum may disagree with you.
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Legalise competing currencies. Let the people choose what they use...
Never heard that before. How would that work?